Hecla Mining Company (HL) has agreed to sell its Quebec subsidiary, Hecla Quebec, which operates the Casa Berardi gold mine, to Orezone Gold Corporation for a total consideration of up to $593 million. The transaction, expected to close in the first quarter of 2026, will immediately improve Hecla’s liquidity and allow the company to focus capital on its core silver assets.
The deal is structured as $160 million in cash, $112 million in Orezone shares (about 65.7 million shares, representing 9.9 % of Orezone’s pro‑forma shares), and $80 million in deferred cash installments payable 18 and 30 months after closing. In addition, Orezone will pay up to $241 million in contingent consideration, split between a $211 million royalty tied to future gold production and a $20 million payment linked to permitting milestones. Orezone’s financing package includes a $100 million gold‑stream from Franco‑Nevada, which provides immediate capital and a preferential purchase right for Orezone.
The sale aligns with Hecla’s strategic pivot toward silver. Management said the transaction is “immediately ROIC accretive” and will be used to reduce debt and fund growth at Keno Hill and Greens Creek, its flagship silver operations. Orezone, meanwhile, is expanding from a single‑asset West African producer to a diversified, multi‑jurisdictional miner, adding a proven, cash‑flow‑generating asset in Quebec’s Tier‑1 jurisdiction. Franco‑Nevada’s gold‑stream financing underscores the confidence in the mine’s long‑term value.
Casa Berardi has been in production since 1988 and has produced over 3.2 million ounces of gold. As of December 31, 2024, proven and probable reserves stood at 1.3 million ounces. In 2024 the mine produced 86,648 ounces of gold and 24,231 ounces of silver, a slight decline from 90,363 ounces of gold and 22,415 ounces of silver in 2023. The mine’s production guidance for 2026 is 83,000–91,000 ounces of gold, down from a five‑year average of 106,100 ounces, reflecting a shift toward a more conservative reserve estimate.
Hecla’s balance sheet will benefit from the cash proceeds, allowing the company to retire debt and invest in its silver portfolio. Management highlighted that the sale will free up capital for the ramp‑up of Keno Hill and the expansion of Greens Creek, both of which are expected to deliver higher margins than the gold mine. The transaction also signals Hecla’s confidence in the silver market, where demand has remained resilient amid commodity price volatility.
Analysts have responded positively to the deal. The transaction was described as “a win‑win” for both parties, with Hecla’s debt reduction and Orezone’s diversification seen as strategic gains. The market reaction has been muted, reflecting the routine nature of the announcement, but the deal is expected to support Hecla’s long‑term growth strategy and Orezone’s expansion into a Tier‑1 jurisdiction.
Rob Krcmarov, Hecla’s President and CEO, said the sale “strengthens our balance sheet and positions us to invest in our core silver assets.” Patrick Downey, Orezone’s President and CEO, added that the acquisition “adds a proven, cash‑flow‑generating asset to our portfolio and diversifies our operations in a Tier‑1 jurisdiction.”
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